Regulatory Alerts2018-01-01
FRA Board Decision No. 33 of 2018 on Regulations Governing Investment Funds' Trading in Negotiable Securities
The Egyptian Financial Regulatory Authority (FRA) issued Board Decision No. 33 of 2018 to establish regulatory guidelines for investment funds trading in negotiable securities to finance licensed microfinance activities. The decision mandates that such funds obtain FRA approval, submit comprehensive licensing applications within five working days, and adhere to strict investment policies covering credit, liquidity, and interest rate risks while limiting non-microfinance investments to 10% of net assets. Furthermore, it imposes operational obligations on investment managers, including rigorous due diligence, electronic loan monitoring integration, risk management system implementation, and quarterly reporting, while clarifying collection procedures and management service company evaluation standards.